Internet Company's Revenue Gains Indicates Progress with Advertisers

For the first time in more than a year, Yahoo Inc. is growing, albeit barely.

Yahoo on Tuesday reported its revenue, minus commissions paid to partners for Web traffic, rose 1% in the first quarter after four straight quarters without growth. Meanwhile, revenue from display ads, excluding the traffic costs, increased 2% to $409 million.

Investor optimism was buoyed by better-than-expected results at Alibaba Group Holding...